2U Inc (NASDAQ: TWOU) reported better results than expected during its fourth quarter of 2020. During trades on February 12, TWOU shares rose almost 13 % in price to $55.55.
According to this quarter’s report, 2U reported revenues exceeding $ 215 million and a loss of $ 0.06 per share. These figures are better than those forecast by analysts, which assumed revenue of about $ 208 million and losses of $ 0.09 per share. The GAAP loss was slightly better than the forecasts and the previous year’s figures, which were $ 0.52 per share. The company reported a 35% rise in sales and a loss of $3.22 per share, down 16% year over year.
A business transformation process is currently underway at 2U Inc (TWOU) that will improve profitability. The company created university programs before this investment after receiving the proceeds of its sale. Now the company has changed its operating model to mitigate these risks. Additionally, 2U develops short-term professional courses that can often serve as alternatives to higher education, particularly in the absence of an institution of higher learning. 2U’s online courses help it generate financial returns much faster.
Thus, it may eventually become an essential step in the momentum of 2U because there was a severe crisis in higher education even before the COVID-19 crisis in the United States. People are increasingly moving away from traditional education due to the high cost and the difficulty they have finding a job even with a university degree.
Revenues for fiscal 2021 are expected to increase from $ 910 to $945 million. Simultaneously, 2U Inc (TWOU) any is likely to lose between $ 165 million and $ 185 million, or $ 2.28 to $ 2.56 per share.
2U Inc. (TWOU) has risen 38.84% in the year-to-date (YTD) period and has moved up 12.98% or $6.38 in the latest trading session. Despite this, the stock has gained nearly 122.38% over the past 12 months. As a result, the stock has increased by 38.84% year-to-date and 78.73% over the last 3-month period. Weekly, performance increases by 20.16%, while monthly performance increases by 27.88%.